INCREASING FUEL. HOW THAT IMPACT THE LOGISTICS FIELD

On this globalization era, transportation is the main one that should and mostly must involve in an activities of logistics in logistics field. Transportation is a commonly used and help a lot for running smoothly the movement of goods from the point of origin to the point of consumption. The most expensive cost in logistics management are transportation cost. Why it is expensive? It's because of the fuel price that increasing from a days to another days, the cost of maintenance and others. Transportation is the most expensive cost compared to the other logistics cost such as production cost, merchandise cost and so on.

The famous issues in whole world a days now are the rising of fuel. Fuel is a very important things or known as transportation needs. Every modes of transportation commonly use fuel in their daily movement except pipeline modes of transportation because it only using a pipeline system to move the product(normally in raw materials) .


Increasing the price of fuel in Malaysia give a huge negative impact that the first impact are for company that doing a daily delivery. It will cause the company to spend a large amount of money just for a transportation fuel and this is a big reason why the price of goods nowadays are quite expensive. The price of raw materials plus with the transportation cost or known as Landed Cost, the price of a product will increase because the company are forced to calculate the price including transportation cost.